The US Securities and Exchange Commission Periodically Charges Individuals for Insider

question 2

Multiple Choice

The U.S. Securities and Exchange Commission periodically charges individuals for insider trading and claims those individuals have made unfair profits. Based on this fact,you would tend to argue that the financial markets are at best _____ form efficient.

• A) weak
• B) semiweak
• C) semistrong
• D) strong
• E) perfect

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Definitions:

Withdrawals

Funds or resources withdrawn from a business by its owners for individual purposes.

Salaries

Payments made to employees for their services over a specified period.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue; also known as the bottom line.

Income and Losses

Represents the financial performance of a business, where income refers to the earnings and losses indicate the expenses exceeding earnings over a period.